What is Zest Protocol?
Zest Protocol offers a transparent, on-chain lending solution that minimizes counterparty risk by leveraging smart contracts to manage pooled funds directly on the Bitcoin blockchain. This system allows anyone to audit the funds and the open-source Clarity smart contract code at any time, ensuring full transparency and security. Operating on the Stacks Layer 2 (L2) platform, Zest Protocol enables the non-custodial movement of BTC as sBTC between Bitcoin L1 and Stacks L2, allowing users to interact with native BTC.
Zest Protocol features two main pools: Earn pools for users to gain yield on their BTC, and Borrow pools for users to secure loans against their BTC holdings. Thanks to its use of Stacks' architecture, Zest Protocol has the ability to bypass the typical fees associated with wrapping BTC. Additionally, Zest Protocol supports liquidity providers in generating Bitcoin yield through professionally managed lending pools that extend credit to reputable institutions within the crypto sector. These pools offer diversified exposure and are managed by experienced delegates who conduct due diligence and maintain the pools, providing a hassle-free investment solution for BTC liquidity providers.
What Can I Do in Zest Protocol with Leather?
Using the Leather wallet with Zest Protocol, you can fully engage with the platform's Bitcoin lending and yield generation functionalities:
Earn Bitcoin Yield: Participate in Zest Protocol's Earn pools to generate yield on your BTC, leveraging the protocol’s secure and transparent lending system.
Borrow Against Your BTC: Use Zest Protocol’s Borrow pools to take out loans against your BTC holdings, providing you with liquidity without the need to sell your assets.
Interact with sBTC: Move BTC between Bitcoin L1 and Stacks L2 using Zest Protocol’s non-custodial BTC movement feature, allowing you to interact with native BTC on the Bitcoin blockchain.
Participate in Lending Pools: Provide liquidity to professionally managed lending pools that lend to vetted institutions in the crypto sector.